xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the quarterly period ended September 30, 2012

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from to

Commission file number 000-50820

FIRST CLOVER LEAF FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Maryland

20-4797391

(State or other jurisdiction of

(I.R.S. Employer Identification No.)

incorporation or organization)

6814 Goshen Road, Edwardsville, IL

62025

(Address of principal executive office)

(Zip Code)

Registrants telephone number, including area code (618) 656-6122

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x. No o.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes x. No o.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.

Large accelerated filer o

Accelerated filer o

Non-accelerated filer o

Smaller reporting company x

(do not check if smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o. No x.

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.

The information contained in the accompanying consolidated financial statements is unaudited. In the opinion of management, the consolidated financial statements contain all adjustments necessary for a fair statement of the results of operations for the interim periods. All such adjustments are of a normal recurring nature. Any differences appearing between the numbers presented in the financial statements and managements discussion and analysis are due to rounding. The results of operations for the interim periods are not necessarily indicative of the results which may be expected for the entire year. These consolidated financial statements should be read in conjunction with the consolidated financial statements of First Clover Leaf Financial Corp. (the Company or First Clover Leaf) for the year ended December 31, 2011 contained in the 2011 Annual Report to Stockholders that is filed as Exhibit 13 to the Companys Annual Report on Form 10-K. Accordingly, footnote disclosures which would substantially duplicate the disclosures in the audited consolidated financial statements have been omitted.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Actual results could differ from those estimates.

The Company is a Maryland corporation that was incorporated in March 2006 as the successor corporation to First Federal Financial Services, Inc., in connection with the July 2006 second-step conversion of First Federal Financial Services, MHC and the simultaneous acquisition of Clover Leaf Financial Corp. and its wholly owned savings bank subsidiary, Clover Leaf Bank. The accompanying interim consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, First Clover Leaf Bank (the Bank) and its wholly owned subsidiary, Clover Leaf Financial Services. First Clover Leafs common stock is traded on the NASDAQ Capital Market under the symbol FCLF.

Recent accounting pronouncements: There were no accounting standards recently issued relating to the financial services industry.

Reclassifications: Certain reclassifications have been made to the balances, with no effect on net income or total stockholders equity, for the three and nine months ended September 30, 2011, to be consistent with the classifications adopted for the three and nine months ended September 30, 2012.

Unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2012 and December 31, 2011, are summarized as follows:

September 30, 2012

Less than 12 Months

12 Months or More

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

State and municipal securities

1,165,961

(3,849

)





1,165,961

(3,849

)

Mortgage-backed: residential

2,829,771

(29,455

)





2,829,771

(29,455

)

$

3,995,732

$

(33,304

)

$



$



$

3,995,732

$

(33,304

)

December 31, 2011

Less than 12 Months

12 Months or More

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

Corporate bonds

$



$



$

576,044

$

(123,956

)

$

576,044

$

(123,956

)

State and municipal securities

1,448,738

(17,291

)





1,448,738

(17,291

)

Mortgage-backed: residential

9,805,765

(92,080

)





9,805,765

(92,080

)

$

11,254,503

$

(109,371

)

$

576,044

$

(123,956

)

$

11,830,547

$

(233,327

)

Management evaluates the investment portfolio on at least a quarterly basis to determine if investments have suffered an other-than-temporary decline in value. In addition, management monitors market trends, investment grades, bond defaults and other circumstances to identify trends and circumstances that might impact the carrying value of equity securities.

At September 30, 2012, the Company had seven securities in an unrealized loss position which included: four state and municipal securities and three mortgage-backed securities. The unrealized losses resulted from changes in market interest rates and liquidity, not from changes in the probability of contractual cash flows. The Company does not intend to sell the securities, and it is not more-likely-than-not that the Company will be required to sell the securities prior to recovery of amortized cost. Full collection of the amounts due according to the contractual terms of the securities is expected; therefore, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2012. The Company had in previous filings reported a corporate security that had been in an unrealized loss position for more than 12 months. The bond was called at par during the third quarter of 2012 and is no longer owned by the Company.

The amortized cost and fair value at September 30, 2012, by contractual maturity, is shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Other securities have no stated maturity. Therefore, stated maturities are not disclosed for these two categories.

Available for Sale

Amortized

Fair

Cost

Value

Due in one year or less

$

11,285,318

$

11,411,850

Due after one year through five years

12,497,377

12,894,983

Due after five years through ten years

8,624,282

9,181,316

Due after ten years

16,240,566

17,029,238

Mortgage-backed: residential

27,908,945

28,427,354

Other securities

3,501

3,501

$

76,559,989

$

78,948,242

Securities with a carrying amount of approximately $69,630,000 and $76,501,000 were pledged to secure deposits as required or permitted by law at September 30, 2012 and December 31, 2011, respectively.

Note 3.Loans

The following table sets forth the composition of our loan portfolio by type of loan at the dates indicated:

The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and presents these policies to the Board at least annually. A reporting system supplements the review process by providing management with reports related to loan production, loan quality, loan delinquencies and non-performing and potential problem loans.

Additional information regarding our accounting policies for the individual loan categories is contained in our 2011 Annual Report to Stockholders that is filed as an exhibit to the Companys Annual Report on Form 10-K.

The loan portfolio includes a concentration of loans in commercial real estate amounting to approximately $135,026,000 and $128,657,000 as of September 30, 2012 and December 31, 2011, respectively. The loans are expected to be repaid from cash flows or from proceeds from the sale of selected assets of the borrowers. The concentration of credit within commercial real estate is taken into consideration by management in determining the allowance for loan losses. The Companys opinion as to the ultimate collectibility of these loans is subject to estimates regarding future cash flows from operations and the value of the property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers.

On occasion, the Company originates loans secured by single-family dwellings with loan to value ratios exceeding 90%. The Company does not consider the level of such loans to be a significant concentration of credit as of September 30, 2012 or December 31, 2011.

The recorded investment in loans does not include accrued interest or loan origination fees due to immateriality.

The following tables present our past-due loans, segregated by class, as of September 30, 2012 and December 31, 2011.

All loans are reviewed on a regular basis and are placed on non-accrual status when, in the opinion of management, there is reasonable probability of loss of principal or collection of additional interest is deemed insufficient to warrant further accrual. Generally, we place all loans 90 days or more past due on non-accrual status. However, exceptions may occur when a loan is in process of renewal, but it has not yet been completed. In addition, we may place any loan on non-accrual status if any part of it is classified as loss or if any part has been charged-off. When a loan is placed on non-accrual status, total interest accrued and unpaid to date is reversed. Subsequent payments are either applied to the outstanding principal balance or recorded as interest income, depending on the assessment of the ultimate collectability of the loan.

The following tables present the activity in the allowance for loan losses for the three and nine months ended September 30, 2012 and 2011. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

The following tables separate the allocation of the allowance for loan losses and the loan balances between loans evaluated both individually and collectively as of September 30, 2012, and December 31, 2011.